Lloyds TSB, the UK's fifth-biggest bank, will expand the number of branches offering Islamic banking to serve Britain's 2 million Muslims.
Branches in four towns around the London periphery will join 12 other outlets already offering home finance and current accounts that are compliant with Islamic Shariah law as part of a pilot scheme.
Islamic banking bans fixed-interest returns and speculation. It also outlaws investments in alcohol, pork or gambling. Instead, Islamic banks make regular payments based on profits from accepted investments.
Lloyds TSB's Islamic home finance product purchases property for the client, who in turn buy it from the bank over a specified timescale, paying rent instead of interest over the portion they do not own.
"This expansion of the pilot is yet another milestone on the road to making Islamic banking available to all Muslims in the UK," said Gordon Rankin, of Lloyds TSB Islamic Financial Services, on Wednesday.
"By the end of the year our customers will be able to access Islamic current accounts and home finance in many more branches across the country.
"The fact we're expanding the pilot is testament to the popularity of our Islamic financial services offering so far."
The Islamic Bank of Britain, which was launched last September, was the first in Europe to offer banking services in compliance with Shariah law.